Buyers now need 6 figures to buy typical homes in 22 states

[TheYellowKing]

Buyers Now Need Six-Figure Income to Afford Typical Home in 22 States — Up From Just Six States in 2020

redstate.com

But everything is fine folks! 7% interest rate on homes 400k and higher. I know some Boomers are going to say "in my day we paid 10%-15%" yeah but home prices were 100k or lower weren't they so STFU

 

[Oddball]

Not an accident...The elites want the working class crushed.

yoo veeel own noting, be happy, and eet zee bugs

 

[Harpy Eagle]

Buyers Now Need Six-Figure Income to Afford Typical Home in 22 States — Up From Just Six States in 2020

redstate.com

But everything is fine folks! 7% interest rate on homes 400k and higher. I know some Boomers are going to say "in my day we paid 10%-15%" yeah but home prices were 100k or lower weren't they so STFU

Seems the problem is that a typical house cost more than 400k. Interest rates will go back down, prices likely wont.

What is your suggestion to bring down the price of a home, without screwing over those that own homes now?

 

[TheYellowKing]

Seems the problem is that a typical house cost more than 400k. Interest rates will go back down, prices likely wont.

What is your suggestion to bring down the price of a home, without screwing over those that own homes now?

I'm not saying drop the price of homes but interest rates certainly need to drop. 7% is not sustainable.

My current home is at 3% for a 750$ a month mortgage

At 7% that monthly payment becomes 1980$ and here I am trying to sell with no one wanting to buy cause rates are too damn high

 

[Donald H]

They have for many years. You probably mean 7.
Unless you're talking about billies in the mountains?

 

[Libby von H]

Buyers Now Need Six-Figure Income to Afford Typical Home in 22 States — Up From Just Six States in 2020

redstate.com

But everything is fine folks! 7% interest rate on homes 400k and higher. I know some Boomers are going to say "in my day we paid 10%-15%" yeah but home prices were 100k or lower weren't they so STFU

Biden is so stupid.I used to do real estate research for a major bank.
Biden has done 2 super-stupid thngs lately

1) Pushing bad credit scores over good as a way to increase home ownership. Soooo stupid
2) Forcing the price of housng up by his $10 000 advance

 

[TheYellowKing]

They have for many years. You probably mean 7.
Unless you're talking about billies in the mountains?

What?

 

[TheYellowKing]

Biden is so stupid.I used to do real estate research for a major bank.
Biden has done 2 super-stupid thngs lately

1) Pushing bad credit scores over good as a way to increase home ownership. Soooo stupid
2) Forcing the price of housng up by his $10 000 advance

1) exactly and he's subsidizing those with bad credit by charging those with good credit more fees

2) I wasn't aware of this you got a link?

 

[Harpy Eagle]

Biden is so stupid.I used to do real estate research for a major bank.
Biden has done 2 super-stupid thngs lately

1) Pushing bad credit scores over good as a way to increase home ownership. Soooo stupid
2) Forcing the price of housng up by his $10 000 advance

good thing none of that is happening

 

[Harpy Eagle]

I'm not saying drop the price of homes but interest rates certainly need to drop. 7% is not sustainable.

My current home is at 3% for a 750$ a month mortgage

At 7% that monthly payment becomes 1980$ and here I am trying to sell with no one wanting to buy cause rates are too damn high

The interest rate is only half the problem, or maybe 2/3. A 400k plus house is a lot. My wife and I between us make well over 250k and when we built our house in 2022 we did not even get close to 400k, let alone over it.

7% while seeming crazy to us now, is historically still pretty low.

 

[TheYellowKing]

The interest rate is only half the problem, or maybe 2/3. A 400k plus house is a lot. My wife and I between us make well over 250k and when we built our house in 2022 we did not even get close to 400k, let alone over it.

7% while seeming crazy to us now, is historically still pretty low.

View attachment 926049

Sigh

Historically low, now go look at the home prices in 75, 80, 85 when rates were there highest

Btw I covered this in my OP

 

[Harpy Eagle]

Sigh

Historically low, now go look at the home prices in 75, 80, 85 when rates were there highest

Btw I covered this in my OP

Do you think maybe there is a connection between the interest rates being held down for so long and the crazy increase in house prices over the past 30 years?

 

[TheYellowKing]

Do you think maybe there is a connection between the interest rates being held down for so long and the crazy increase in house prices over the past 30 years?

I love how you all ignore questions asked to you then ask yours instead like I'm going to answer them

There are multiple factors that go into housing prices now go back and compare home prices in 75-90 with those rates an 400k prices at 7% tell me which you would rather pay

 

[Harpy Eagle]

I love how you all ignore questions asked to you then ask yours instead like I'm going to answer them

In what post number did you ask a question? I honestly do not see one.

There are multiple factors that go into housing prices now go back and compare home prices in 75-90 with those rates an 400k prices at 7% tell me which you would rather pay

Of course there multiple factors going into the price of a house, but the very low interest rates made it possible for people to pay more for a home, because as you point out the higher interest rates make it harder of course.

 

[TheYellowKing]

In what post number did you ask a question? I honestly do not see one.



Of course there multiple factors going into the price of a house, but the very low interest rates made it possible for people to pay more for a home, because as you point out the higher interest rates make it harder of course.

In the OP I said some Boomer would say in my day interest rates were higher, ill concede I didn't frame it as a question but still I said you would bring it up

Yeah higher rates do make it harder to buy a home now add higher prices to that

If a home is 100k with 15% interest that's far more sustainable than 400k at 7%

Mortgage Calculator

Free mortgage calculator to find monthly payment, total home ownership cost, and amortization schedule with options for taxes, PMI, HOA, and early payoff.

www.calculator.net

Use this site and tell me

So let's stop deflecting with the vs argument "7% is still historically low" cause that isn't an honest argument and you know it

 

[Harpy Eagle]

In the OP I said some Boomer would say in my day interest rates were higher, ill concede I didn't frame it as a question but still I said you would bring it up

Yeah higher rates do make it harder to buy a home now add higher prices to that

If a home is 100k with 15% interest that's far more sustainable than 400k at 7%

Mortgage Calculator

Free mortgage calculator to find monthly payment, total home ownership cost, and amortization schedule with options for taxes, PMI, HOA, and early payoff.

www.calculator.net

Use this site and tell me

So let's stop deflecting with the vs argument "7% is still historically low" cause that isn't an honest argument and you know it

I am a boomer, but I never bought a house at those rates, the most I have ever paid was the 5.25 I am paying now.

So, yes with higher rates it is hard to pay the higher price for a house, which is why I say that the low rates for so very long are a very large part of why prices are so high today.

 

[DGS49]

For you Leftists, here's how it works:

You rent for as long as you must, paying as little as possible, and saving what you can toward a down payment on a house While renting, you scout around to find houses that you can afford with your current income, including houses that "need work," so that you might be able to gain some "sweat equity."

Your first house will not be posh. It won't have everything you want. It won't be an "average" or "typical" house for your geographical area; it will be MODEST and lacking in some desirable features. This house is called a "Starter Home."

Over time, that house will increase in value and you will pay down the mortgage (a bit), and if you are NORMAL, your income will increase. In due course, you will be able to sell that Starter House and buy something nicer. Maybe THAT one won't be what you really want, but it will be nicer than the first one.

Basically everyone I know has gone through this process, and yet Leftists don't seem to get it. They keep spouting nonsense like, "The average worker can't afford to buy the average house!" as though that were something new and astonishing.

Of course, normal people don't have six figure student loans to pay off, from their quest to get a degree in gender studies. So there's that.

 

[Harpy Eagle]

For you Leftists, here's how it works:

You rent for as long as you must, paying as little as possible, and saving what you can toward a down payment on a house While renting, you scout around to find houses that you can afford with your current income, including houses that "need work," so that you might be able to gain some "sweat equity."

Your first house will not be posh. It won't have everything you want. It won't be an "average" or "typical" house for your geographical area; it will be MODEST and lacking in some desirable features. This house is called a "Starter Home."

Over time, that house will increase in value and you will pay down the mortgage (a bit), and if you are NORMAL, your income will increase. In due course, you will be able to sell that Starter House and buy something nicer. Maybe THAT one won't be what you really want, but it will be nicer than the first one.

Basically everyone I know has gone through this process, and yet Leftists don't seem to get it. They keep spouting nonsense like, "The average worker can't afford to buy the average house!" as though that were something new and astonishing.

Of course, normal people don't have six figure student loans to pay off, from their quest to get a degree in gender studies. So there's that.

I did not realize it was a leftist that started this thread.

Thanks for letting me know.

 

[Harpy Eagle]

Your first house will not be posh. It won't have everything you want. It won't be an "average" or "typical" house for your geographical area; it will be MODEST and lacking in some desirable features. This house is called a "Starter Home."

Part of the problem is that pretty much nobody is building these any longer.

 

[Dont Taz Me Bro]

Buyers Now Need Six-Figure Income to Afford Typical Home in 22 States — Up From Just Six States in 2020

redstate.com

But everything is fine folks! 7% interest rate on homes 400k and higher. I know some Boomers are going to say "in my day we paid 10%-15%" yeah but home prices were 100k or lower weren't they so STFU

There are plenty of places all over this country where homes are affordable, but you probably won't be able to live in the trendy places. Plenty of affordable homes in rural areas and the Rust Belt states and with so many more people having the ability to work remote the options are there. You just need to have the will to make the move.